Personally I hate those Atoms!
Here is my experience with Atom :
I have bought a netbook from samsung using atom N270 1GB RAM, XP Sp3. I tought it was powerful enough to do low profile works such as office and internet. I was attracted from the size of those netbooks. This could be a good traveling partner. I still have my dell with i7 but the small sized netbook could be put into some usage.
I was disappointed, the proc was already 100% loaded before I even got a chance to do anything, and the load came from pre-installed mcaffee. I have deinstalled it it was fine, but after using the netbook to write my internship report with lots of pictures.....it was F**CK**NG slow.
I tried to connect to the internet using a surf stick from vodafone...the netbook was already loaded about 80% because of the software from vodafone before the internet explorer even started.
I have sold the netbook on ebay.
No more Atom for me.
Well, i shouldnt buy a htpc when you can also build one yourself.
An intel atom could be great for a cheap htpc, but 1.6Ghz single core isn't much...
1 Gb RAM should be enough for a htpc too.
The point: a graphics card. If you want to play high-definition (blu-ray for example) movies, you need a decent graphics card if you dont want your screen to "freeze".
A 160Gb harddisk is pretty small also. I should recommend 1Tb+, as movies take alot of hard disk space...
That acer you suggested is NOT able to play hd/blu-ray films.